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Avanza Pension receives warning and administrative fine

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FI is issuing Avanza Pension a warning for insufficient management of technical provisions and reporting. Avanza Pension must also pay an administrative fine of SEK 35 million.

FI conducted an investigation into Försäkringsaktiebolaget Avanza Pension’s compliance with the rules for some actuarial calculations, documentation and reporting during the period January 2016 to July 2018.

FI’s investigation shows that the company has not met a large number of the key components of the regulations, in particular with regard to assumptions that serve as a basis for the calculation of technical provisions. As a result, the aggregate value of the company’s technical provisions has been too low. FI’s investigation also shows that there were errors in Avanza Pension’s reporting and the company had not prepared and followed policy documents for its reporting.

Given that the technical provisions have been undervalued, the Board of Directors and executive management of the company, as well as FI, have not been aware of the company’s actual solvency ratio. Consumer protection has thus been impaired. The Board of Directors and executive management may also have had an overly optimistic view of the company’s future earnings potential. There has also been a risk that FI’s and external stakeholders’ perception of the company has been inaccurate since the reporting was subject to widespread deficiencies.

However, Avanza Pension has initiated a major change project to rectify the deficiencies. FI therefore does not consider there to currently be a concern that the infringements will be repeated. Given this background, FI considers it sufficient to issue the company a warning and an accompanying administrative fine of SEK 35 million.

Regulator Information

Abbreviation: FI
Jurisdiction: Sweden

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